It's not often that a company gets excited about 35,000 workers jumping ship via early retirement packages and buyouts, but when that company is General Motors, the bailage is a very good thing. The news means that General Motors is two years ahead of schedule in terms of shrinking its workforce, way ahead of analysts' expectations. What's more is 12,600 workers from Delphi are taking advantage of an attrition plan offered up by the United Auto Workers and General Motors.
This is expected to push GM's annual structural cost reductions from its previously reported $7 billion to $8 billion. Most of the departing workers will leave in 2006, putting GM over its goal of reducing its workforce by 30,000 by January 1, 2007.
[Source: Reuters]
